GM Faces $1.6 Billion Loss Amid EV Tax Credit Cuts and Emission Rule Easing | AI News Digest
General Motors (GM) is bracing for a significant setback, projecting a $1.6 billion loss in the upcoming quarter, largely due to diminished U.S. tax incentives for electric vehicles (EVs) and a loosening of emissions regulations. The clean vehicle tax credit, which provided $7,500 for new EVs and $4,000 for used models, lapsed last month. Concurrently, the Environmental Protection Agency has relaxed emissions standards, potentially slowing the push for automakers to adopt electric technologies. As part of its financial recalibration, GM will incur $1.2 billion in non-cash impairment charges and an additional $400 million tied to contract terminations and settlements. Despite these challenges, GM asserts that its current lineup of electric vehicles will continue to be available to buyers, though the company may encounter further financial repercussions as it adjusts its production plans.
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